Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between Hanmi Science (long) and Hanmi Pharm (short). There are three major reasons we like this pair trade.</li>
<li>First, the gap between these two stocks have widened too much in the past year. Second, Hanmi Science may pay higher cash dividends due to inheritance tax issue. </li>
<li>Third, Hanmi Pharm's valuations remain lofty and Hanmi Science's valuation discount relative to its historical valuation has become more compelling. </li>
</ul>


In this insight, we discuss a pair trade between Hanmi Science (long) and Hanmi Pharm (short). There are three major reasons we like this pair trade.
First, the gap between these two stocks have widened too much in the past year. Second, Hanmi Science may pay higher cash dividends due to inheritance tax issue. 
Third, Hanmi Pharm's valuations remain lofty and Hanmi Science's valuation discount relative to its historical valuation has become more compelling. 


Korea Biotech & Healthcare: A Pair Trade Between Hanmi Science and Hanmi Pharm

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> is seeing gradual recovery in its base business, with the company’s plasma and vaccine businesses are back to double-digit growth path.</li>
<li>The company is preparing to resubmit marketing application to the FDA for its biologics license application for GC5107, a blood derivative product indicated for the treatment of primary immunodeficiency diseases.</li>
<li>Green Cross shares are trading at a forward P/E of 20.9x, cheaper than peers. Entry into the lucrative U.S. immunoglobulin market will call for multiple expansion of the shares.</li>
</ul>



Green Cross (006280 KS) is seeing gradual recovery in its base business, with the company’s plasma and vaccine businesses are back to double-digit growth path.
The company is preparing to resubmit marketing application to the FDA for its biologics license application for GC5107, a blood derivative product indicated for the treatment of primary immunodeficiency diseases.
Green Cross shares are trading at a forward P/E of 20.9x, cheaper than peers. Entry into the lucrative U.S. immunoglobulin market will call for multiple expansion of the shares.


Green Cross (006280 KS): Strengthening Base Business; US Entry Remains Key Catalyst

<ul>
<li>In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.</li>
<li>In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.</li>
<li>We highlight 26 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.
In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.
We highlight 26 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

Enzychem Lifesciences Corp / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/enzychem-lifesciences-corp" target="_blank" data-smartkarma-citation="entities:26185:1" rel="noopener">Enzychem Lifesciences Corp (183490 KS)</a> is eyeing on its lead innovative drug candidate, EC-18 for long-term sustainable growth driver. EC-18 is in late-stage clinical trial for couple of indications.</li>
<li>EC-18 is in phase 2 clinical trial for the treatment of chemoradiation-induced oral mucositis (CRIOM), an acute inflammation of the oral mucosa following systemic chemoradiation therapy.</li>
<li>Currently, CRIOM has no approved therapies. Enzychem Lifesciences has filed for FDA breakthrough therapy designation for EC-18 in CRIOM, which will enable designing of phase 3 study.  </li>
</ul>



Enzychem Lifesciences Corp (183490 KS) is eyeing on its lead innovative drug candidate, EC-18 for long-term sustainable growth driver. EC-18 is in late-stage clinical trial for couple of indications.
EC-18 is in phase 2 clinical trial for the treatment of chemoradiation-induced oral mucositis (CRIOM), an acute inflammation of the oral mucosa following systemic chemoradiation therapy.
Currently, CRIOM has no approved therapies. Enzychem Lifesciences has filed for FDA breakthrough therapy designation for EC-18 in CRIOM, which will enable designing of phase 3 study.  


Enzychem Lifesciences Corp (183490 KS): Picked New Drug Development as Future Growth Engine

Event-Driven

<ul>
<li>There is an interesting situation brewing at the Hanmi Pharm Group, which is one of the largest pharmaceutical companies in Korea.</li>
<li>On 16 March, it was reported that Hanmi Pharm decided not to raise the agenda for re-appointment of CEO Lim Jong Yoon as an inside director at the Hanmi Science.</li>
<li>In terms of trading, there appears to be more upside in Hanmi Science (008930 KS) as compared to Hanmi Pharm (128940 KS) in the next several months.</li>
</ul>


There is an interesting situation brewing at the Hanmi Pharm Group, which is one of the largest pharmaceutical companies in Korea.
On 16 March, it was reported that Hanmi Pharm decided not to raise the agenda for re-appointment of CEO Lim Jong Yoon as an inside director at the Hanmi Science.
In terms of trading, there appears to be more upside in Hanmi Science (008930 KS) as compared to Hanmi Pharm (128940 KS) in the next several months.


A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?

South Korea

Hanmi Pharm. Company Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

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Hanmi Pharm (128940 KS)

Korea Biotech & Healthcare: A Pair Trade Between Hanmi Science and Hanmi Pharm

In this insight, we discuss a pair trade between Hanmi Science (long) and Hanmi Pharm (short). There are three major reasons we like this pair trade.

Douglas Kim

Green Cross (006280 KS): Strengthening Base Business; US Entry Remains Key Catalyst

Green Cross’ international revenue from blood products and vaccine recorded double-digit revenue growth in Q2. The company is preparing to resubmit...

Tina Banerjee

Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage. We highlight 26 pair trades...

Douglas Kim

Enzychem Lifesciences Corp (183490 KS): Picked New Drug Development as Future Growth Engine

The company’s lead drug candidate, EC-18 is in late-stage clinical trial for an unmet need in oncology, chemoradiation-induced oral mucositis,...

Tina Banerjee

A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?

There is a growing probability that eventually there could be a brewing M&A battle among the three heirs of the Hanmi Pharm owner family.

Douglas Kim

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